Author: Rhys Jenkins, Chris Edwards.
The paper examines the impact of the emergence of China and India as important players in the global economy on 21 sub-Saharan African countries. Trade between the “Asian Drivers” and Africa has grown significantly since 1990 and in the last few years they have also become sources of foreign direct investment (FDI) in the region. Four types of impacts are considered—exports from Africa to the Asian Drivers, African imports from China and India, competition in third markets, and impacts on FDI. It is shown that for some African countries these impacts are by no means negligible and are likely to become more important in the foreseeable future. The ways in which Africa has been affected differs from country to country, with some such as Angola, Nigeria and Sudan being important exporters, others such as Ghana, Ethiopia, Kenya, Tanzania and Uganda mainly importers from Asia, and Lesotho facing competition from China in export markets.